Rental income vs EMI calculator (monthly deficit or surplus)

In NCR a flat rarely pays for itself: a ₹60 lakh flat renting at ₹16,000 carries an EMI near ₹41,000. This tool shows the monthly gap you must fund, the rent that would break even, and the maximum loan the rent alone can service.

Monthly deficit (−) or surplus (+)₹-29,079
EMI
₹41,656
Net rent after vacancy and owner costs
₹12,577
Rent covers this share of EMI
30.19%
Rent needed to break even
₹46,859
Loan this rent could fully service
₹14.49 L
Approx. yearly tax saving from interest set-off (first year)
₹60,000

Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.

How it is calculated

net rent = rent × occupancy − owner costs; gap = net rent − EMI; break-even rent = (EMI + owner costs) ÷ occupancy; max loan = net rent ÷ EMI per lakh. Tax: rental income is taxed after a 30% standard deduction and set-off of loan interest; a loss from house property up to ₹2 lakh can be set off against salary, shown as an approximate first-year saving.

Worked example

₹48 lakh loan at 8.5% for 20 years (EMI ₹41,656) against ₹16,000 rent with 3 weeks' vacancy and ₹2,500 owner costs: net rent ₹12,577, a monthly deficit of about ₹29,000; rent would need to be ₹47,000 to break even, and ₹12,577 of rent services only a ₹14.5 lakh loan.

Frequently asked questions

Will rent cover my home loan EMI in Noida?

Rarely. With yields near 3% and loan rates near 8.5%, rent typically covers 30–40% of the EMI on an 80% loan; the rest is your contribution to building equity.

Is the deficit worth it?

Only if appreciation plus the equity you build exceeds the deficit; run the ROI calculator with your appreciation assumption.

Can I set off the loss against salary?

Yes, a loss from house property up to ₹2 lakh a year can be set off against other income in the old tax regime; the balance carries forward for 8 years against house-property income.

Sources and what to verify: Income-tax Act s.24(b), s.71(3A).

Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.